DOT Surpasses LINK and MATIC, but Technical Indicators Signal a Possible Correction
Polkadot (DOT) has managed to surpass Chainlink (LINK) and Polygon (MATIC) in terms of market capitalization. DOT’s price has increased by more than 21.50% over the past week.
According to CoinMarketCap data, DOT is currently trading at $6.86. Despite experiencing a slight correction in the last 24 hours, DOT still maintains a higher rank in terms of market cap compared to LINK and MATIC.
Within the past day, DOT has outperformed LINK, which saw an 8% drop in price. On the other hand, MATIC has performed the best among the three cryptocurrencies, only recording a 4.96% loss in the same period. LINK is currently valued at $15.04, while MATIC stands at $0.8661.
In terms of market cap, DOT has a total valuation of $8.605 billion, slightly ahead of LINK with $8.377 billion. Both of these cryptocurrencies have a slight advantage over MATIC, which has a total market cap just above $8 billion.
From a technical standpoint, DOT faced rejection at the $7.425 resistance level within the past 24 hours. As a result, it corrected to just below the $6.595 support level earlier in today’s trading session. However, bulls were able to push the price back above $6.595.
If DOT manages to close today’s trading session above this significant price point, it may attempt to challenge the $7.425 resistance level within the next 24 – 48 hours. Breaking this barrier could pave the way for a potential value increase to as high as $10 in the following days.
On the other hand, if DOT closes below $7.425 today, it may invalidate the bullish outlook. In a more bearish scenario, DOT could retest the $6.595 support level. Falling below this level could expose it to the risk of dropping to $5.975 in the short term.
Technical indicators on DOT’s daily chart suggest a possible drop in the next 24 hours. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators indicate a decrease in buyer activity on DOT’s charts. The RSI line is poised to cross below the RSI Simple Moving Average (SMA), which could signal a shift towards bearish momentum. Additionally, the slope of the MACD line appears to be flattening, suggesting that DOT’s bullish momentum may have peaked.
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